Registration/incorporation/License from RBI for Assets Finance Company- NBFC in Jaipur, Rajasthan.

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WHAT IS ASSETS FINANCE COMPANY (AFC)

An Assets Finance Company (AFC)  is a company which is a financial institution carrying on as its principal business the financing of physical assets supporting productive/economic activity, such as automobiles, tractors, lathe machines, generator sets, earthmoving and material handling equipment’s, moving on own power and general-purpose industrial machines. Principal business for this purpose is defined as aggregate of financing real/physical assets supporting economic activity and income arising therefrom is not less than 60% of its total assets and total income respectively.

In simple Terms Assets Finance Company is a Company which provides Vehicle loan, it also is known as a vehicle finance company.

Eligibility of AFC

  1. The company should be registered under the Companies Act 2013 or Companies Act 1956.
  2. Minimum Net owner Fund should be 2 Crore, after registration, it can be used for business purpose.
  3. One person should be appointed as Whole-time director have banking experience

STEPS OF REGISTRATION

  1. Incorporation of a company with MCA under the business code of 65.
  2. Net owned Fund of 2 crores can be maintained at the time of incorporation or afterward, but it should be 2 crores at the time of approval from Reserve Bank of India.
  3. Deposit 2 crores in FD and obtain a certificate of no lien from the respective Banks.
  4. Online application filing to the Reserve Bank of India along with required documents.
  5. Submission of Hard copy of Documents to the Regional office of RBI along with all enclosures.
  6. After proper verification and approval of all required documents, a Certificate of registration will be granted by the Central office of the Reserve Bank of India.

Documents requirement

Documents required for the Company registration

  1. Pan card of proposed subscribers and directors.
  2. Voter ID/DL/Passport of proposed Subscribers and directors.
  3. Bank statement of last 3 Months of proposed Subscribers and directors.
  4. Educational qualification, Occupation, mail Id and Contact no. of proposed Subscribers and directors
  5. Passport Size photo of proposed Subscribers and directors.
  6. Electricity bill not older than 2 months.
  7. Rent Agreement/ownership paper

Documents for Certificate of registration from RBI

Documents required for registration as Type I - NBFC-ND

Sr. No.

Requirements to be complied with and documents to be submitted to RBI by Companies for obtaining certificate and Registration from RBI as NBFC

1

Certified copies of Certificate of Incorporation and Certificate of Commencement of Business in case of public limited companies.

2

Certified copies of extract of only the main object clause in the MOA relating to the financial business.

3

Board resolution stating that:

  1. the company is not carrying on any NBFC activity/stopped NBFC activity and will not carry on/commence the same before getting registration from RBI
  2. the USBs in the group where the director holds a substantial interest or otherwise has not accepted any public deposit in the past /does not hold any public deposit as on the date and will not accept the same in future
  3. the company has formulated  “Fair Practices Code” as per RBI Guidelines
  4. the company has not accepted public funds in the past/does not hold any public fund as on the date and will not accept the same in the future without the approval of Reserve Bank of India
  5. the company does not have any customer interface as on date and will not have any customer interface in the future without the approval of Reserve Bank of India

4

Copy of Fixed Deposit receipt & bankers certificate of no lien indicating balances in support of NOF

5

For companies already in existence, the Audited balance sheet and Profit & Loss account along with directors & auditors report or for the entire period the company is in existence, or for last three years, whichever is less, should be submitted

6

Banker’s report in respect of applicant company, its group/subsidiary/associate/holding company/related parties,  directors of the applicant company having substantial interest in other companies  The Banker’s report should be about the dealings of these entities with these bankers as a depositing entity or a borrowing entity.

Note: Please provide bankers report from all the bankers of each of these entities and provide the report for all the entities. The details of deposits and loan balances as on the date of application and the conduct of the account should be specified.

 

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